Based on Sarbanes-Oxley,who Is Ultimately Responsible for the Independence of the External

question 23

Multiple Choice

Based on Sarbanes-Oxley,who is ultimately responsible for the independence of the external auditor?

• A)The CPA firm's engagement partner.
• B)The CPA firm's quality control partner.
• C)The client's senior management.
• D)The audit committee.

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Definitions:

Equity

Refers to the ownership interest in a corporation in the form of common or preferred stock; it represents the owners' share in the company's assets.

Fairness

A subjective concept referring to equal and impartial treatment, decisions, and actions in context with ethical, societal, or personal standards and norms.

Normative Economics

An approach to economics that makes judgments about what the economy should be like or what particular policy actions should be recommended.

Behavior

The actions or reactions of an individual, group, or system in response to external or internal stimuli.